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“We must measure what can be measured,
and make measurable what cannot be measured.”
Galileo
Galilei 1610 AD
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One of the major costs of operating a business is
the expenditure for labor. In the past, many managers considered
labor expenses as marginally controllable, and predictable only to
the extent that increasing costs of wages and benefits are
inevitable. In fact, labor costs can be controlled, and productivity
gains are possible, even without dramatic changes in present methods
or equipment. Once managers realize labor costs can be controlled,
they only need to adapt a program of labor management and control to
achieve productivity improvements.
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Genesis offers two primary engineering services,
Engineered Labor Standards and Activity Based Compensation.
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Work measurement is the process of evaluating the labor content
of a work function for the express purpose of establishing
engineered standards.
Webster's Dictionary defines 'standard' as: "That which is
established by a competent authority as a rule or measure of
quantity."
Genesis Engineered Labor Standards are derived through the
application of work measurement procedures, including a
pre-determined motion time system known as Master Standard Data (MSD),
and the use of standard data or formulas. Based on their successful
applications all over the world, these approaches to work
measurement are the 'competent authority' which Webster defines. |
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Webster’s Dictionary defines the words:
Activity –
an organizational unit for performing a specific
function.
Based –
the fundamental part of
something.
Compensation –
something that constitutes an equivalent or recompense.
Activity
Based Compensation is a method of paying the workforce for their
value added activities and to focus everyone to talk, think, and
act, based on dollars. |
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